08-06-2014, 03:30 PM
New Additions
I thought it was a good time to update the portfolio, since its been almost half a hear since my initial update.
In that time, the market has been very high as you all know, so I've been adding to my cash reserves, making sure the emergency fund is well-funded, and even paying extra principle on mortgage payments rather than buying new stocks.
After the end of last week, and a general downward trend in a few of the stocks I'm watching, I decided to finally jump in today, and I made a purchase several months ago before the S+P got so toppy.
First, on 3/11 I picked up ROIC, a promising REIT that operates grocery-store-anchored properties on the West Coast, mostly in California but increasingly in Oregon and Washington as well. I was initially drawn to the company because of its PEG ratio under 1. On further research, though, I found there was much to like about this company that is run by a seasoned veteran of the industry with reams of experience taking small-cap REIT's and making them successful.
Since that purchase, ROIC has been up 2.9%, which I'm sure lags the market, and it payed its sizable 4.137% dividend once in June.
My second addition during this period was T, picked up today at what I hope is a pretty decent price of $34.61 following the sell-off related to Sprint throwing in the towel on its plan to buy T-Mobile.
I believe T will easily dominate both of those names, and, as with many, many other industries, consolidation is coming to the industry one way or another, whether the FCC likes it or not. I do not believe a behmoth with a moat the size of T's will be the one getting bought in said consolidation. Of course, I'm also pretty convinced that the pie will just keep getting larger and larger for many years, as I am certain that more people could continue using more data for years to come, and the giants like T and VZ will surely find a way to make boatloads of profits during that time period.
With ROIC and T bought, one riskier, more speculative pick, and one of the most stalwart possible, I will likely continue down the path of picking up some risk with higher growth opportunities like ROIC, as well as stalwarts like T. Currently, I have GE, PG, KO and GILD at the top of my wish list, I'll let you figure out which one is for growth.
Well, that's the update for now. Like I said, I was slow to fund the portfolio, sometimes putting in only very small amounts when the market was high. The market is still high, but it's a little bit less so, and I still don't see any downward catalyst for the market in the near term besides international black swans (Ukraine) and the end of QE, which I suspect is priced in already. I do not see rising rates happening in at least the first half of '15, if they happen at all next year.
I thought it was a good time to update the portfolio, since its been almost half a hear since my initial update.
In that time, the market has been very high as you all know, so I've been adding to my cash reserves, making sure the emergency fund is well-funded, and even paying extra principle on mortgage payments rather than buying new stocks.
After the end of last week, and a general downward trend in a few of the stocks I'm watching, I decided to finally jump in today, and I made a purchase several months ago before the S+P got so toppy.
First, on 3/11 I picked up ROIC, a promising REIT that operates grocery-store-anchored properties on the West Coast, mostly in California but increasingly in Oregon and Washington as well. I was initially drawn to the company because of its PEG ratio under 1. On further research, though, I found there was much to like about this company that is run by a seasoned veteran of the industry with reams of experience taking small-cap REIT's and making them successful.
Since that purchase, ROIC has been up 2.9%, which I'm sure lags the market, and it payed its sizable 4.137% dividend once in June.
My second addition during this period was T, picked up today at what I hope is a pretty decent price of $34.61 following the sell-off related to Sprint throwing in the towel on its plan to buy T-Mobile.
I believe T will easily dominate both of those names, and, as with many, many other industries, consolidation is coming to the industry one way or another, whether the FCC likes it or not. I do not believe a behmoth with a moat the size of T's will be the one getting bought in said consolidation. Of course, I'm also pretty convinced that the pie will just keep getting larger and larger for many years, as I am certain that more people could continue using more data for years to come, and the giants like T and VZ will surely find a way to make boatloads of profits during that time period.
With ROIC and T bought, one riskier, more speculative pick, and one of the most stalwart possible, I will likely continue down the path of picking up some risk with higher growth opportunities like ROIC, as well as stalwarts like T. Currently, I have GE, PG, KO and GILD at the top of my wish list, I'll let you figure out which one is for growth.
Well, that's the update for now. Like I said, I was slow to fund the portfolio, sometimes putting in only very small amounts when the market was high. The market is still high, but it's a little bit less so, and I still don't see any downward catalyst for the market in the near term besides international black swans (Ukraine) and the end of QE, which I suspect is priced in already. I do not see rising rates happening in at least the first half of '15, if they happen at all next year.